Estimated Buyer Closing Costs

You might be saving up for a down payment. 3.5%, 5%, 20%... but do you know how much more you will have to bring to the closing table? It is important to understand the additional fees and services involved in purchasing a home in order to allocate enough cash or decide to see if requesting a seller credit is right for you.

Please keep in mind that these are estimated costs and will vary based on the price of the home, the type of mortgage and your location.

Mortgage Fees

These are fees that are charged by your mortgage company in order to process your loan.

Appraisal Fee $400-$600 

Credit Report - $50-$400

Tax Service - $100-$200

Rate Lock Fee -  $800-$1,000

Application / Origination Fee - $800-$1,000

Escrow 3 Months Property Taxes - (Ex. $5,000/yr Taxes = $1,250) 

Escrow 3 Months Home Owners Insurance - (Ex. $1,200/yr Insurance = $300)

Pre-Paid Interest - This would be a perdiem charge based on the day of the month that you close and your interest rate

Professional Fees

Attorney Fee - $1,000-$1,500

It is not required in the state of New Jersey to use a real estate attorney, but it is highly reccommended.  They will aid in the negotiation of home inspection issues, coordinate the title and closing, and protect your interests during the process.  I suggest using a local attorney in the area of which you are buying as there are many local factors and professional protocol that go into a real estate transaction that do not apply in other areas.

Title Search - $1,000-$1,500

There are multiple fees that are associated with a good title search.  These can include important state and federal searches, tax searches, tidelands searches as well as notary, delivery, and recording fees that are associated with ensuring you have clear title to the property

Title Insurance - $1,200-$1,500 or (0.5% of the value of the home)

Title insuance is issues to protect you, the homeowner from any encumbrances that might have been overlooked or omitted in the search that was done prior to closing.  This price can vary with the purchase price of the home for larger homes.

Home Inspection - $400-$600

A good home inspection is a very important aspect to buying any home, even new construction.  This will uncover any hidden defects including flood damge and provide a thorough inspection of any attics, crawl spaces or basements.  Being present at the home inspection is important since a good home inspector will go over all of the utilities in the home, how to use them and how to care for them.  Even if there are no major issues with the home, you will learn about potential hazards, how to avoid future issues and general tips on  proper home ownership.

Survey - $750- $1000

Most banks and/or townships will require a new survey of the property that you are purchasing.  This will ensure that no illeagle structures or encumbrances have been put on the property since it was last reviewed.  It allows you as the home owner to see where sheds and fences can be added and if any additions or additional sturctures can be built.  Some times the fee for this will be adjusted upward if the property is larger or difficult to navigate.

Miscelaneous Fees

Recording Fees - $150-$300

The title of your home, the deed and your mortgage must be recorded.  There are small fees to ensure this is done correctly and in a timely manner.

Utility Proration - $???-$???

Most closing will involve perdiem prorations of the Water/Sewer/Electric and Taxes based on the previous owners payments and the day of the month that you are closing. This will vary from day to day in any transaction.

Elevation Certtificate - $400-600

In the wake of hurricane sandy, flood insurance has been an ever increasing concern in the real estate world.  This is the document that your flood insurance company will use to determine your flood rates. This is typically done by the surveyor when they are completing the survey and most likley will be packaged together.  Obviously, this only applies to homes in a flood zone.  To see if your property is in a flood zone, please click Here

Mansion Tax  - 1% of the Purchase Price ( Ex. $1,500,000 Price = $15,000 Tax)

If you are purchasing a home over $1,000,000 in the state of New Jersey you are required to pay what they call a mansion tax. This is paid by the buyer to the state of New Jersey.  This does not apply to vacant Land over $1,000,000.

Additional Insurance Payments

Depending on the transaction, some insurance companies will take 3 months-12 months of the premium up front at closing.  This can be on top of the 3 month escrow refered to above that your mortgage company will require so double check with your attorney, title or insurance company prior to closing.

Flood Insurance Premium

If you are in a flood zone, you will most likley be asked to pay your yearly premium upfront as this does not get escrowed by the bank.

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5 out of 5 based on 20 ratings.
0 user reviews.
Includes 10 Zillow reviews

CJ Davies

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CJ exceeded all of our expectations and helped us buy our dream home by the water. I grew up in North NJ so it was important to work with someone local to the area. He is extremely knowledgeable and helped us find solutions with some of the unexpected items that come with buying a home. He was responsive and attentive, and overall great to work with!

CJ did an amazing job for us. Having grown up in the area allows him to share a depth of knowledge about the area that others can’t. Not only is he extremely well aware of the market, but he has relationships with the very best professionals across the home-buying business and every other service you could imagine. It is very easy to see how well thought of he is in his profession by the relationships he has and his commitment to excellence in the home buying and selling process. Every obstacle that came our way was met with calm and resolve with CJ and he figures out solutions to include thinking outside the box. I can’t recommend CJ enough. He will always pick up his phone and get back to you. If, on the rare occasion he does not have the answer, he will hunt it down and get back to you promptly. He will exceed your expectations and make deals happen when others can’t.

CJ was amazing through the entire process of selling our home. He knows the ins and outs of the sale process and was able to catch a few things before they became an issue. Would recommend CJ for any real estate transaction you might be thinking about!

My wife and I had a great experience using CJ as our realtor. Being an out-of-state buyer presents some unique challenges. CJ accommodated all our requests. He was always available for phone calls and questions. I would recommend using his skills and expertise for your next home purchase.

Honesty, integrity and professionalism is what you can expect from CJ. He will guide you through the process, making it all so simple and smooth. He is very informative and helpful throughout it all. Thank you CJ. Looking forward to our next transaction.

CJ worked out great!! He helped us get where we wanted to be without bringing the ego and drama that we have experienced with previous realtors. Two thumbs up from this couple ????

CJ went above and beyond for our home buying experience. Extremely knowledgeable of the area and led us to the best in the field to bring us to closing as soon as possible. Extremely professional and genuine. We never doubted that he had our best interest at heart. Got us an amazing deal on our home. If you need a realtor look no further. As far as we are concerned, he is the best in the field and the only one we’d ever hire.

CJ is very professional and knowledgeable. He helped us to create an awesome listing and we received a solid offer right off the bat. He worked to help us find a home and even in a tricky situation, we were able to purchase a wonderful new home thanks to him and his team! I would highly recommend working with CJ if you're in the market!

Alissa Walkoviak

CJ is a standup guy. Always answers right away is very reliable and he has a great smile! The process of selling my house was quick and easy. No issues whatsoever. His knowledge of real estate saved me a huge headache in the long run and I'm soooooo grateful I chose CJ as my realtor. He honestly knows what hes doing it was a very good experience! I'm very happy

CJ made everything so easy. He knew what I was looking for and he delivered. He was able to streamline the process and get me to closing quickly. I am very, very pleased! It was a pleasure working with him.